New Lagos Tenancy Bill: What landlords, tenants and brokers must know

Introduction: Understanding the Lagos Tenancy Bill 2025

The Lagos State Tenancy and Recovery of Premises Bill 2025 represents a landmark effort to modernize rental housing laws in Nigeria’s most populous city. Designed to address chronic issues like exploitative advance rent demands, unregulated broker practices, and unfair evictions, this reform aims to create a fairer rental market for landlords, tenants, and real estate professionals alike.

Analysis: Breaking Down the Tenancy Law Reforms

1. Broker Regulations and Fee Caps

Section 3 introduces mandatory registration with the Lagos State Real Estate Regulatory Authority (LASRERA) for all property agents. Key changes include:

• Maximum 5% commission on annual rent
• 7-day deadline for remitting landlord payments
• Mandatory receipt issuance

Violators face penalties up to ₦1 million or 2 years imprisonment, targeting widespread issues like double-renting scams and inflated commissions.

2. Advance Rent Limitations

The bill prohibits:

• New tenants: >1 year advance payment
• Existing tenants: >3 months advance payment

This addresses Lagos’ notorious 2-3 year advance rent demands that often push residents into debt.

3. Eviction Protections & Tenant Rights

Sections 10(a) and 43 explicitly ban:

• Self-help evictions (lockouts, utility disconnections)
• Property damage or harassment tactics

Landlords must now obtain court orders for legal evictions, with violators facing ₦1 million fines or 6-month jail terms.

Summary: Core Provisions at a Glance

The 2025 Tenancy Bill focuses on four key areas:

1. Professionalization of real estate brokerage
2. Affordability through advance rent caps
3. Due process in eviction cases
4. Transparent accounting for service charges

Key Points for Stakeholders

For Tenants

• Right to challenge unreasonable rent hikes
• 6-month utility account statements
• Deposit refund guarantees

For Landlords

• Streamlined eviction processes
• Clear guidelines for rent increases
• 15-day notice for property access

For Brokers

• Mandatory LASRERA registration
• Commission transparency requirements
• Strict fiduciary responsibilities

Practical Advice for Compliance

1. Landlords: Update lease agreements with new payment terms
2. Tenants: Document all payments and communications
3. Brokers: Complete registration before conducting business
4. All parties: Familiarize with mediation processes

Points of Caution

• High housing demand may complicate enforcement
• Court system capacity for expedited cases
• Potential for informal rental market growth

Comparison: 2025 Bill vs. 2011 Tenancy Law

Legal Implications

The bill establishes several criminal offenses:

• Excessive advance rent: ₦1M fine/3 months jail
• Illegal eviction: ₦1M fine/6 months jail
• Broker violations: ₦1M fine/2 years jail

Conclusion: A New Era for Lagos Rentals?

While still in draft form as of July 2025, this proposed legislation could significantly impact Lagos’ rental market by addressing systemic abuses. Successful implementation will require robust enforcement and public education campaigns.

FAQ: Lagos Tenancy Bill 2025

When does the bill become law?

Currently in committee review; no enacted date yet.

How to report violations?

Through LASRERA offices once implemented.

Does it apply to commercial properties?

Yes, covers all rental accommodations.